ZURICH, Aug 13 – Swisscom trimmed its 2020 revenue forecast on Thursday as COVID-19 weighs on roaming volume, while keeping its targets for core profit and capital spending intact and maintaining its dividend plans.
State-controlled Swisscom, the country’s dominant telecoms player, still expects earnings before interest, tax, depreciation and amortisation (EBITDA) of around 4.3 billion Swiss francs ($4.72 billion) and capital expenditure of around 2.3 billion this year, it said.
“Mainly as a result of COVID-19, Swisscom expects net revenue to be slightly lower at around 11.0 billion (previously around 11.1 billion) francs due to the reduction in roaming volume,” it said.
“If business continues as planned, Swisscom intends to propose to the 2021 annual general meeting payment of an unchanged dividend of 22 francs per share for the 2020 financial year.”
First-half group revenue of 5.44 billion francs was down 2.7% after currency adjustments. In its saturated Swiss core business, revenue fell 3.9% to 4.10 billion.
Group EBITDA slipped 1.4% to 2.21 billion francs. EBITDA fell by 1.2% in the core Swiss business, while that of Italian business Fastweb increased by 4.6% as its revenue grew 5.3%.
($1 = 0.9101 Swiss francs) (Reporting by Michael Shields, editing by John Miller)